Berkshire Hathaway to Buy Taylor Morrison in $6.8 Billion Deal

Berkshire Hathaway Inc. will acquire Taylor Morrison Home Corp. in an all-cash deal valued at approximately $6.8 billion, marking the first major acquisition under Chief Executive Greg Abel and signaling confidence in the U.S. housing market, Paige Smith and Alexandre Rajbhandari reported for Bloomberg News.

A Taylor Morrison housing development following Berkshire Hathaway’s announced $6.8 billion acquisition. (Photo: Taylor Morrison)

The offer of $72.50 per share represents a 24% premium to Taylor Morrison’s closing price on Friday. It is Berkshire’s largest acquisition since purchasing Occidental Petroleum Corp.’s petrochemical business in January.

“We are excited to welcome Taylor Morrison into Berkshire’s portfolio,” Abel said in a statement.

“Over time, we expect to unify our site-built homebuilding operations into a combined platform, enabling us to deliver the dream of homeownership to more Americans.”

Taylor Morrison shares rose as much as 23% in premarket trading Monday, while Berkshire Hathaway’s Class B shares were little changed.

The acquisition comes amid weakness in homebuilder stocks and elevated mortgage rates. Berkshire, headquartered in Omaha, Nebraska, held a record $397 billion in cash at the end of the first quarter.